Relates to establishing a tax credit for retrofitting heavy duty vehicles or purchasing new vehicles that comply with section 19-0323 of the environmental conservation law

BILL NUMBER:S5414

Title of bill

An act to amend the tax law, in relation to establishing a tax credit for retrofitting heavy duty vehicles or purchasing new vehicles that comply with section 19-0323 of the environmental conserva- tion law

Purpose

To improve air quality by allowing a tax credit for taxpayers who take steps to make their heavy duty vehicle fleet compliant with the Diesel Emission Reductions Act.

Summary of provisions

Section 1. Section 210-B of the tax law is amended by adding a new subdivision 51 to:

Part (a) explain eligibility for the diesel emission reductions tax credit.

Part (b) defines the amount of the credit as the fair market value of the best available retrofit technology, $14,000.

Part (c) declares receipts must be submitted with tax returns to receive the tax credit.

Section 2. Adds a new subdivision to Section 606 of the tax law that relates to the tax credit for best available retrofit technology to be computed as provided in paragraph 3 of this subsection. Paragraph two declares the amount of credit, the fair market value for the best avail- able retrofit technology.

Section 3: relates to the new clause in Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law which is amended to reflect this new tax credit.

Section 4 sets forth the effective date.

Justification

Diesel exhaust particle pollution is a clear and present health threat to New Yorkers. According to the United States Environ- mental Protection Agency, diesel exhaust particles are a likely lung cancer agent, diesel exhaust is also the prime contributor to airborne fine particle pollution which is linked to premature death, asthma attacks, and cardiovascular disease. Diesel exhaust is also a contribu- tor to formation of ground level ozone; a powerful respiratory irritant that is linked to premature death, asthma attacks and can damage the lung tissue of children. Too many New Yorkers live in an area that fails to meet federal health standards for ozone. Counties across the state are listed as being out of attainment for the fine particle federal health standard.

New York State consumes over 48 million gallons of diesel fuel each year and owns or operates through contract thousands of diesel-powered vehi-

cles. By installing the best retrofit technology heavy duty vehicles and the fleets of businesses doing work for the state will reduce signif- icant amounts of pollution and New York will take a positive step toward addressing the public health threat posed by combustion of diesel fuel.

The Diesel Emission Reduction Act was enacted in 2006 but failed to provide aid for compliance. However it never became effective because each year in the budget the enactment date is pushed back one year. This legislation creates a financial incentive for groups so voluntarily comply with a law passed but never fully enacted.

Legislative history

This is a new bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.